Prior to the coronavirus pandemic, there were some signs of a slight slowdown in certain submarkets. There is still considerable uncertainty regarding the effects that the coronavirus pandemic will have on the global and Nordic economies and thus on the long-term market conditions for NCC.
In the most recent two quarters, we noted signs of longer decision-making processes, which could have an impact on the Group moving forward. In the main, NCC is impacted by the general economic situation and the GDP trend.
The underlying long-term market conditions for contracting operations in the Nordic region remains positive. There is continued demand for public buildings, such as schools, hospitals and retirement homes, driven by growing cities and the demographic trend. The demand for residential buildings has been at a stable level for some time. In general, demand for renovation and refurbishment is healthy. Longer decision-making processes impact the commercial property market.
Public-section infrastructure initiatives are fueling the Nordic infrastructure market, resulting in a continued strong market in Norway and Sweden. Demand for asphalt and stone materials in Norway and Sweden is stable, driven by a strong market for infrastructure and maintenance.